What term is used to describe situations where countries specialize in and trade different varieties of the same type of product?
a. comparative advantage
b. the Heckscher-Ohlin model
c. intra-industry trade
d. increasing returns to scale
Ans: c. intra-industry trade
You might also like to view...
The United States temporarily operated outside the production possibilities frontier in
A. 1933. B. 1943. C. 1973. D. 1982.
In discussing the distribution of income among families, the term “lowest fifth” indicates
a. the poorest five percent of families. b. the poorest twenty percent of families. c. the smallest twenty percent of families. d. the percentage of families receiving one-fifth of the income.
In a closed economy taxes are $750 billion, government transfers are $400 billion, government expenditures are $500 billion, and investment is $400 billion. What are private saving, public saving and national saving?
If economies of scale in an industry are so extensive that a single firm could serve the entire market at a lower cost than if the market was split between two or more firms, this industry is called a(n):
A. Conglomerate B. Natural monopoly C. Oligopoly D. Restraint of trade